Since the end of 2006, Starbucks’ (SBUX) stock has taken a nosedive as strapped US consumers refuse to shell out $5 for coffee. So what’s Starbucks’ solution? Get paid in Euros (Reuters):
[Starbucks CEO Howard] Schultz told Germany’s Frankfurter Allgemeine Zeitung (FAZ) that the company plans to licence 150 new coffee shop locations in Germany, Britain and France in the next three years, with 120 of those in Germany.
“The international business is cushioning the weakness in America at the moment,” Schultz said.
Starbucks is aiming to raise its sales abroad by 20 per cent per year over the next three years while annual growth of only six per cent is expected in the United States, the FAZ said.
The one problem with this theory: The European consumer is (or soon will be) hurting, too.
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